GBPUSD Eyeing a Test of 1.5300?

British Pound is surging higher against the US Dollar, as buyers seem to be in control.

GBPUSD is following a bullish trend line on the hourly chart and looks set for a move towards 1.5300.

US Retail Sales released by the US Census Bureau posted an increase of 0.1% in October 2015, less than the forecast of 0.3%.

US Producer Price Index released by the Bureau of Labor statistics, Department of Labor posted a decrease of 0.4% in October 2015, whereas the market was expecting an increase of 0.2%.

Technical Analysis

The GBPUSD started to move higher after testing the 1.5020 support area. There is a bullish trend line formed on the hourly chart, which is acting as a catalyst for an upside move. The pair is comfortably above the 100 moving average (MA), i.e. a bullish sign.

GBPUSD

On the upside, the next target of buyers can be around the 76.4% Fib level of the last drop from the 1.5399 high.

A break below the bullish trend line and support area could ignite a change in the trend.

US Retail Sales

There were a few important releases in the US today, including the Retail Sales, which is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes, reported by the US Census Bureau. The forecast was lined up for an increase of 0.3% in October 2015, compared with the preceding month. However, the outcome was on the lower side, as the US Retail Sales gained only by 0.1%.

The US Producer Price Index was also released by the Bureau of Labor statistics, Department of Labor. The outcome was again on the lower side, as the US PPI posted a decline of 0.4% whereas the market was expecting 0.2%.

The US Dollar moved lower against most major currencies after the release, which means there is a chance of the GBPUSD pair moving higher.

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